EUR/USD: trade idea

Dima Chernovolov

EUR/USD reached sell target 1.1000

Next sell target - 1.0800

EUR/USD has been falling sharply in the last few trading sessions – breaking below the support level 1.1000, which was set in our previous report as the sell target for this currency pair. The breakout of this support level intensified the bearish pressure on EUR/USD – leading to the sharp sell-off helping the price approach the next major support level 1.0800 (as you can see from the daily EUR/USD chart below).

Considering the strength of the support zone near 1.0800 and given that the daily RSI and the daily Stochastic indicators have both reached the oversold area, EUR/USD can be expected to correct up in the nearest time toward the former support level 1.1000. EUR/USD is likely to reverse down from 1.1000 toward the next sell target 1.0800.